Hanson So

Long/short equity, growth
Hanson So
Long/short equity, growth
Contributor since: 2013
Who cares. Tobacco companies are still killing people. RGR - gun company - is providing the amunition for people to kill other people. Your opinion has no material relevance on the valuation of the company, since it's already a known fact.
The "12%" is just looking that high only because the price of the company has dropped. they weren't increasing the dividend or over paying compared to the revenue or anything. An alarming factor that I alerted my group was the fact that KMI was borrowing a lot of debt to finance these dividend payments. Someone said "that's normal in the industry", but looks like it's an alarming factor.
I'm holding despite the drop. We will laugh at how cheap it is a year from now when it's in it's $50's
Lost $6k today. but no big deal
How does 20% yearly yield from dividends feel?
Why not pick up some ALDW or CVRR for some good yield too?
Thanks for the article but I felt this article lacked analysis of the numbers. I was expecting to read something more convincing.
He is compensated three times?
Thanks for this article! This article has added another point in convincing me to purchase it's stock.
What's going on, with Iran OIL?
So it's best to wait for the FED to announce interest rate hike, then purchase the company when the stock drops down in price, as the yield would be higher. The assumption is ED would be able to sustain its yield since its fundamentals still stay intact, and revenue is increasing.
This is awesome, and inspirational
Finally today, the stock falls
I think we had the opportunity to vote against these absurd payments
Could you explain more about the laches issue? I don't understand it. I'm an investor in the company.
I can work with someone on this or take care of this
Does "confidential" means they didn't win a big settlement?
It will be up to a year for the settlement to reach with Google. Best strategy is to keep buying on dips. I believe in it and I'm putting my money where my thoughts are.
When one big settlement comes through this stock will skyrocket
Disclosure: I own shares in VRNG
It jumped even more because now JOSB is actually interested in talking to Mens wearhouse and letting them look at their books
Mens Wearhouse has already shown prior interest in the stock and offered $65 per share if they were given access to their books
JOSB may be interested in doing this.
Here are the quick summary points: http://bit.ly/1kwKe8K
I'm buying and never thinking back. Going to use the stock's appreciation to stay in some nice hotels belonging to their properties
$21.92 at the time of writing to the current price of $23.16 represents a 5.6% increase over a 12 week period - not bad
We can see $24.75's very soon possibly if bulls hold and further patent joint ventures will increase their bottom line when earning call comes out. Their current JV with Samsung: http://bit.ly/1d8jYhN
Thank you James for your comments regarding their new addition in telecommunications. Their strategic acquisitions and ability to uphold patent disputes allows them to gain a well known reputation along with demanding a higher margin. They still have a lot of unlicensed patents in their portfolios which has a high potential for spending as well.
If I was looking at this again, I would sell long term puts and wait for the political conditions to settle.
January 2015 - $15 strikes - $1.50 - will yield 5% a year and if the company becomes cheaper we have the ability to pick it up as a bargain (highly unlikely given the current company's management team and market share gains in the market)
Yodadog - I definitely admire your ability to take risks and move in and out of this stock - this one's a tough one to hold onto! Glad you made a good amount of profits over the year, very few can achieve that successfully!
Credits to Date Waters for this find when the company was in it's $16's. His blog can be found: http://bit.ly/14IgMHy
I wanted to credit the source who provided me with the information in this thesis. I believe it's Luis Ahumada - PM of Thrive Capital who deserves credit for this recognition, who can be reached at @thrivecap.
LightseedVC, you are correct and thank you for mentioning this. The stock would be worth, at minimum $10 per share. Acacia is becoming a big play in the IP industry, representing over 10% of all lawsuits which is a huge amount considering the amount of competition out there. Gross margins should continue to increase as well due to reduced legal fees in enforcement activities, and more deals done in high-margin international deals.
Acacia will be able to purchase patents much cheaper as they grow their reputation and develop niche expertise.
Investors don't want to own stocks of companies participating in the IP market due to the "Troll Patent" label. Holding this company, no matter how cheap it is, is no guarantee that people will one day become favorable towards the company. Especially during the current administration by Obama, there is constant negativity associated with the stock company. Recent wins by VRNG is a positive indicator that sentiment is starting to change.
Compared to ROVI, DTSI, which exhibit a 27x and 51.6x P/E, and IL and TRAK, 58.3x and 38.6x in the Market MAkers industry, Acacia comes close to 28x P/E making it affordable and attractive. This is for the very long term holders who aren't afraid to hold long and take the risk that market sentiment will be negative in the short run.
Getting paid 2.28% in dividends to wait is an atttractive bonus to holding this company which could whip-lash holders.
As patent disputes go to trial, enforcing patents are difficult (often less than 5% succeed). But with a brand like Acacia with a team of experts behind the company, they significantly help increase the chance of success and patent jurys are more likely to rule in favor of the patent holder. Usually the award results in large operating profits for the company. For Acacia, this kind of profits are usually high margin (50%+).
With time, Acacia's business prospects will get better and their overall profitability will improve.
Getting into the stock right now is buying in at a time when it's unfavorable, and stock holders could be rewarded greatly once public sentiment improves, and patent enforcability increases.
These environmental liabilities have been the biggest expense for DTRX: http://bit.ly/15Ch0zC
Yet through the transfer of environmental liabilities it saves the company more money than doing a clean up themselves. They have the ability to transfer the environmental liabilities to many parties bidding which helps to lower the price. This is the best DTRX can do. As production increases, excess waste will too and thus cost will naturally increase.
Hiring a third party has many benefits:
-Lower chance of litigation from the EPA and further penalties
-Much faster than traditional cleanups
Naturally, all companies will eventually have to participate in this remediation efforts and this cost will be factored into the production of the chemicals. This cost will soon be passed to the end buyer and all firms will be on equal footing.
You are right Tim about the reasons why this stock has been undervalued. GLACIER PEAK CAPITAL LLC has been a rising shareholder in the company owning 600k of the 1.6m shares of this company making it their largest position at $16 million. They're not interested in exiting any time soon. With support from these institutions, it makes owning a stock like this much more easier with a safety net.
Harbin Electrics come to mind - Have you investigated this one fraud allegation and how the buyout succeeded?
If the stock fell further from a lack of dividend, who cares! The billionaire kings like Icahn will get to buy the stock cheaper!